Determining the Future Value of Education. Jenny Lopez estimates that as a result of completing her master’s degree, she will earn an additional $8,000 a year for the next 40 years.

a. What would be the total amount of these additional earnings?

b. What would be the future value of these additional earnings based on an annual interest rate of 6 percent? (Use a financial calculator or Exhibit 1-B in the Chapter 1 Appendix.)

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